Velan Inc. (VLN) Q3 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Unless indicated otherwise, all amounts are expressed in U.S. dollars, and all financial metrics discussed are from continuing operations. I now turn the call over to Mr. Jim Monabat, Chairman of the Board and CEO of Vela. Thank you, Rishi. Good morning, afternoon, and evening, everyone. Vela delivered healthy adjusted EBITDA of $9.5 million. on sales of $71.7 million, driven by the execution of high-margin projects and continued tight management of operating expenses. With respect to sales, let me point out that, as expected, most rescheduled orders from the previous quarter were captured in Q3 2026. A similar customer dynamic occurred in certain complex projects in the third quarter, leaving us again with orders worth a few million dollars still pushed out to later periods. Let's turn to slide five. Our order backlog reached $296.8 million at the end of the third quarter, up 8% from the beginning of the year. At quarter end, 80.4% of the backlog, representing orders of $238.5 million, were deliverable within 12 months, compared to 83.4% at the end of Q3 last year. Bookings amounted to $77.9 million in the third quarter of fiscal 2026, a year-over-year increase of 32%, further driving momentum in our backlog. The strong growth reflects higher bookings by our North American operations in the nuclear and oil and gas sectors, along with increased bookings by our Italian and Chinese units. These factors were partially offset by reduced orders from the German operation. In North America, the line secured a valve order of more than 20 million Canadian dollars from Ontario Power Generation, or OPG, for reactors being refurbished at the Pickering Nuclear Generation Station, confirming our leadership position in this fast-growing nuclear sector. First shipment is scheduled f...